| Wed 26 May 2010, 12:36 | | GFI - Gold Fields Limited - Pioneers carbon trading in The Gold Industry |
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GFI
GOGOF
GFI - Gold Fields Limited - Pioneers carbon trading in The Gold Industry
Gold Fields Limited
Incorporated in the Republic of South Africa
Registration number 1968/004880/06
Share code: GFI
Issuer code: GOGOF
ISIN - ZAE 000018123
PRESS RELEASE
GOLD FIELDS PIONEERS CARBON TRADING IN THE GOLD INDUSTRY
26 May 2010, London and Johannesburg. Gold Fields Limited (Gold Fields) (JSE,
NYSE, NASDAQ Dubai: GFI) is set to become the world`s first gold mining company
to sell Certified Emissions Reductions (CERs), the financial securities used to
trade carbon emissions.
Gold Fields will derive the CERs from the capture of methane gas at its Beatrix
Gold Mine in South Africa`s Free State province. The company will sell 1,700,000
CERs to European energy trading company Mercuria Energy Trading SA under forward
contracts which will run until 2016. The transaction was brokered by TFS Green,
the carbon credits broker and environmental business of the worldwide Tradition
Group.
CERs are traded globally and frequently bought by industrial companies as part
of their efforts to alleviate their own carbon emission obligations. At current
CER values and exchange rates, the CER contract is worth about R200 million.
Gold Fields will use the funds to finance a number of projects linked to the
methane capture. The first phase, set for completion before the end of this
year, comprises the installation of a methane extraction system underground and
flares above surface at a cost of about R42 million. For the second phase Gold
Fields is looking at ways of using the gas to generate electricity, thereby
converting a harmful greenhouse gas into a valuable resource. Construction of a
power generation plant, with the potential to generate about 5MW of electricity,
is scheduled to start next year.
So far CERs-linked projects in Africa comprise less than 2% of the total number
of projects registered by the Clean Development Mechanism (CDM) executive board,
the global body tasked with administering CERs trading. Gold Fields` Beatrix
project is one of around 15 South African projects that have to date received
Designated National Authority verification from South Africa`s Department of
Mineral Resources.
The Gold Fields/Mercuria CER transaction, which is subject to final regulatory
approvals, was yesterday recognised by the London-based Energy Risk magazine as
the "Deal of the Year" for 2010 in its annual energy risk awards.
Gold Fields` Chief Executive Officer, Nick Holland, comments: "In addition to
the obvious financial and environmental benefits, this project will result in a
safer working environment for our people at Beatrix, as it eliminates the hazard
of underground mine methane, and it is one of many examples that shows Gold
Fields` commitment to being the global leader in sustainable gold mining."
Methane emanates from underground geological features such as faults, fissures
and dykes and escapes during the normal course of mining operations. If released
into the atmosphere it is a potent greenhouse gas. At Beatrix the methane gas
will be captured at source underground and then conveyed via a network of pipes
to the surface, where the methane will be flared. Installation of the
underground pipes is well underway.
"We are delighted to have been involved with this transaction - we firmly
believe that projects in Africa and other developing countries linked to carbon
emission reduction projects are where the market will be focused in the future,"
says Lucy Mortimer, global manager of TFS`s CDM & Joint Initiative Business.
Mercuria Energy Trading`s Jean Francois Steels said of the transaction: "This is
our first transaction in Africa and follows shortly on the opening of our newest
international office in South Africa. It shows our commitment to improving the
geographical distribution of carbon finance to include the African continent."
The Beatrix development is the first in a number of carbon projects Gold Fields
is investigating to bolster its sustainable mining practices. The strategy is
underpinned by efforts to become more energy efficient and thus reduce
dependence on coal-fired electricity.
Gold Fields was advised by Promethium Carbon, a South African carbon advisory
company, throughout the development of the project, by assisting in the tender
development, the evaluation and allocation of the tender.
About Gold Fields Limited
Gold Fields is one of the world`s largest unhedged producers of gold with
attributable production of 3.6 million ounces* per annum from nine operating
mines in South Africa, Ghana, Australia and Peru. Gold Fields also has an
extensive growth pipeline with both greenfields and near mine exploration
projects at various stages of development. Gold Fields has total attributable
Mineral Reserves of 81 million ounces and Mineral Resources of 271 million
ounces. Gold Fields is listed on JSE Limited (primary listing), the New York
Stock Exchange (NYSE), the Dubai International Financial Exchange (DIFX), the
Euronext in Brussels (NYX) and the Swiss Exchange (SWX). For more information
please visit www.goldfields.co.za.
*Based on the annualised run rate for the second quarter of F2010
About Mercuria Energy:
Mercuria Energy Group is an international group of companies active over a wide
spectrum of energy markets including crude oil and refined petroleum products,
natural gas, power, coal, biodiesel, vegetable oils and carbon emissions.
Mercuria Energy is one of the world`s five largest independent energy traders,
with a strong commitment to growth in its carbon trading sector. The company has
offices in twenty countries. Its largest trading floor is in Geneva,
Switzerland.. For more information visit www.mercuria.com
About TFS Green:
TFS Green is part of Tradition, a global leader in interdealer broking. With
offices in 24 countries, Tradition covers over 3,000 institutional clients and
covers markets ranging from global foreign exchange, energy and environmental
products, commodities, equities, coal, freight, precious metals, property and
pulp & paper markets to money markets, derivatives and bonds and repos.
Tradition`s CDM & JI business, TFS Green, is a market leader in its field. It
was awarded Best Primary Originator GHG Emissions Kyoto Projects Credits (JI and
CDM), Best Broker Spot & Futures GHG Emissions EU ETS, and received a total of
16 awards for its services within the environmental markets from Environmental
Finance in the last awards - the highest number won by any company in the
history of the awards. TFS was also awarded "Broker of the Year 2008`` by Point
Carbon. TFS has various offices around Asia, including China, Hong Kong, Japan,
Singapore, and the Philippines. It also works through associate firms in Vietnam
and India.
TFS Green is the trading name of Tradition Financial Services Ltd which is
regulated by the Financial Services Authority in the UK. For more information,
visit www.tfsgreen.com
Media Contacts
Sven Lunsche
Gold Fields
+27 11 562-9763
Sven.lunsche@goldfields.co.za
Lucy Mortimer
TFS Green London
+44 20 7198 1600
Lucy.mortimer@tfsgreen.com
Patrick Prendergast
Mercuria
+41-22-594 7000
pprendergast@mercuria.com
Benita Sirone
Mercuria
+41-22-594 7000
bsirone@mercuria.com
Sponsor:
J.P. Morgan Equities Limited
Date: 26/05/2010 12:36:10 Produced by the JSE SENS Department.
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